Every organisation has lots of data — whether it’s in well-organised databases or scattered across spreadsheets and old systems. But what about the data you don’t even realise you have? Aptly named Shadow Data, this data exists outside of formal processes, hiding in the shadows, out of view, ungoverned and unmanaged. Not only can it lead to operational inefficiencies and duplicate costs, it can pose serious security risks to your organisation. To help you shine a light in your shadow data, we explore what shadow data is, why it’s a problem, and how you can begin to manage it effectively.
What is Shadow Data?
Shadow data refers to information that lives outside the systems typically governed by formal IT systems or processes. Data that hasn’t been properly documented, isn’t governed, and is often stored in locations that are off the radar of IT departments. Think of files stored on personal drives, legacy systems or outdated databases still in use, or external data downloaded from sources like open registries.
This data isn’t necessarily harmful in itself, it becomes a problem when no one knows it’s there. Imagine an iceberg. The visible portion above the surface is the data you know about—your dashboards, data warehouses, and pipelines. But below the surface, hidden in the depths, is the larger, more dangerous mass of shadow data. It’s the data no one’s tracking, making it difficult to manage, secure, or use effectively, increasing your organisation’s risk without your knowledge.
Why Shadow Data is a Growing Threat
Wasted Resources
Shadow data poses a significant threat for several reasons. First, it’s inefficient. When data is scattered in different systems, often unknown to other parts of the organisation,you run the risk of duplicating efforts or even repurchasing the same data. For instance, multiple departments may buy access to the same external data source simply because they aren’t aware that another department already has it. This can lead to wasted resources and increased costs.
Security Risks
Shadow data is difficult to find and manage. Without proper documentation, it’s hard to know where this data exists, who has access to it, and what it’s being used for. This lack of visibility makes it difficult to safeguard the data, increasing the likelihood of breaches or leaks. Organisations that fail to address shadow data are more vulnerable to cyberattacks because the data often isn’t included in formal security protocols.
Missed Opportunities
Shadow data also prevents organisations from getting the most value out of their information. Without knowing it exists, it’s impossible to leverage your shadow data in valuable ways, such as integrating it into analytics, reports, or automations. By not being able to tap into this hidden resource, businesses are missing out on insights that could drive meaningful decisions and innovation.
How to Bring Shadow Data Into the Light
Addressing shadow data might seem like a daunting task, but there are simple steps you can take to start solving the problem today. Here’s how:
Document Everything
One of the most straightforward ways to deal with shadow data is to document it whenever it’s created. Every time a new data asset is produced—whether it’s a report, a file, or data downloaded from external sources—make sure it’s recorded somewhere. The more transparent you are about your data, the less likely it is to be lost or forgotten.
Keep It Simple
Documentation doesn’t have to be complicated. Thats why we have developed the MAST methodology to make the process easy, and recommend four simple things to record about every data asset
- Name the data asset
- Add a brief description of what it is
- Specify where it’s stored
- Identify the contact person responsible for it
Just those four pieces of information can make a huge difference in managing shadow data.
Centralise Your Data
While you may not be able to eliminate shadow data entirely, having a central place where data is documented ensures nothing important gets lost. Tools like the Aristotle Metadata Registry allow you to create a centralised system that everyone in the organisation can access.
Foster Collaboration
Data management isn’t just an IT task. To tackle shadow data, encourage collaboration across departments. Teams should regularly share what data they’ve created or acquired and ensure it’s documented in a way that others can access and understand.
Use Technology
Leverage technology to make the process smoother. The Aristotle Metadata Registry automates much of the documentation process, helping you track data assets, assign ownership, and validate that your data is well-governed. By centralising and automating, you can reduce the risk of shadow data and ensure you’re getting real value from your data.
Unlock the Full Potential of Your Data
Shadow data doesn’t have to remain in the dark. By taking these steps, organisations can start to manage their data more effectively, reduce security risks, and uncover hidden value. With the right approach, you can shine a light on shadow data and ensure that your organisation’s information is fully utilised and protected.
Want to learn more? We recently hosted a webinar that dives deeper into how shadow data can impact your organisation and the steps you can take to address it. You can watch the full webinar here: Shining a Light on Shadow Data.
Ready to take control of your data? Contact Aristotle Metadata today to learn how our solutions can help you document, manage, and protect your most valuable asset.
